Brokers optimistic for BTL prospects in 2014

Brokers optimistic for BTL prospects in 2014

Optimism is sweeping the buy-to-let broker sector with three out of four expecting to do more business this year, according to a new report.

This follows a successful final quarter in 2013 when two-thirds of brokers reporting an increase in business, according to new research conducted by NatWest Intermediary Solutions.

Three out of 10 said business had remained stable in the last three months of the year, while just 4% saw a drop.

The outlook for 2014 is even more positive, according to the survey, which sampled 501 intermediaries.

Three out of four brokers expect to more buy-to-let mortgage business this year, with a mere 2% expecting to do fewer cases.

One in four expected to do the same amount of business.

Graham Felstead, head of NatWest Intermediary Solutions, said: “The survey results are not a surprise as the recovery in the buy-to-let market has been well documented.

"In the last two years it has made steady progress in terms of the value and volume of applications submitted.

"What is perhaps unexpected is the very high expectations for the sector’s prospects. There are certainly good signs of balanced growth being witnessed, which means both landlords and lenders will be viewing the market positively.

"This optimistic outlook is consistent with the research we conducted on the mainstream residential market which showed that confidence in the market had increased significantly from six months ago.

“We anticipate receiving more buy-to-let business from intermediaries this year.

"Last October, we improved our rental calculation, simplified our criteria and increased the proc fees for completed buy-to-let cases, making it more appealing for brokers operating in the ‘amateur landlord’ sector.

"We will continue to apply more focus on buy-to-let business as part of our overall intermediary mortgage proposition. Our BDMs are armed with the knowledge and information to help brokers and their clients to thrive in this market.”